Wall Street is staging a modest Wednesday rebound after Tuesday's brutal tech-led selloff — the Nasdaq shed 2.21% and the S&P 500 dropped 1.44% as a global rout in semiconductor stocks swept from Seoul to New York. All eyes are now locked on Micron's after-the-bell earnings report, which analysts are calling the single most important market event of the month. Meanwhile, the US-Iran peace framework is easing energy markets, with crude sliding toward $72 as tankers resume Hormuz transit — but a hawkish Fed and rising rate-hike bets continue to weigh on growth assets across the board.
→ MICRON (MU) EARNINGS AFTER THE BELL: The most anticipated print of the month. With MU down 13% Tuesday and the entire AI memory complex on trial, tonight's results — consensus at $20.83 EPS / $35.75B revenue — will either validate the AI spending thesis or deepen the tech rout. Watch guidance language on HBM demand closely.
→ FED BANK STRESS TEST RESULTS (TODAY): The Federal Reserve releases annual stress test results for major banks today. Given the hawkish rate environment and elevated Treasury yields, any unexpected capital shortfalls could hit bank stocks and ripple through financials.
→ MAY NEW HOME SALES + PCE SETUP: May New Home Sales data hits today, a key read on how elevated mortgage rates are hitting housing. More critically, tomorrow's May PCE report — the Fed's preferred inflation gauge — will set the tone for September rate-hike odds. Any upside surprise could push yields higher and reignite selling in growth stocks.